You Operate a Factory That Produces Beach Towels

question 163

Multiple Choice

You operate a factory that produces beach towels.Your current level of output equals 2,000 towels per week.Your weekly variable cost equals $8,000.If your total cost each week equals $9,000,it follows that:

• A) the average variable cost of production equals $2 per towel.
• B) the average variable cost of production equals $4 per towel.
• C) the average total cost of production equals $8 per towel.
• D) none of the above